Government Announces Fifth Economic Policy Package

Jakarta (Antara Bali) - The government has announced its fifth economic policy package on investment and finance.

Cabinet Secretary Pramono Anung said after a limited cabinet meeting headed by President Joko Widodo here on Thursday the new package is expected to boost economic growth and opening new jobs.

"The core of the package is revaluation of assets outlined by Coordinating Minister for Economy Darmin Nasution and Finance Minister Bambang Brojonegoro, and 'best practice' presented by Coordinating Minister for Maritime Affairs Rizal Ramli and abolition of double taxation," Pramono said.

Governor of Bank Indonesia Agus Martowardojo said the central bank appreciated  the policies adopted by the government to shore up the flagging economy.

"We welcome the limited cabinet meeting with facility for revaluation of assets and prevention of double taxation on real estate investment class," Agus said.

He said the fifth policy package would open an opportunity for corporations to revaluate assets.

Asset revaluation would likely  show that the assets of corporations are larger in value that would improve the health ratio needed by corporations to increase their capital, he said.

 Darmin Nasution gave details of the policy in revaluation of corporation assets  and prevention of double taxation on real estate investment class.

Meanwhile, chairman of the Board of Commissioners of the Financial Service Authority (OJK) Muliaman Hadad called for policy package on development of sharia banking.

"We will simplify regulation on license for sharia bank products . We will prepare codification in a book . Sharia bank need only to report any of their new products," Muliaman said.

He said regulation on the opening of office networks  would also be simplified.

The networks of conventional banks as the parent companies could also provide sharia banking service , therefore, there is no need for the sharia bank subsidiary to open branches.

"The branches of the parent banks could sell sharia products  that the sharia bank subsidiary don't have to open own branches for efficiency," he said.

Over the past month, the government already announced four economic policy package seen as a bold and big step to reform the economy amid global economic uncertainty.

The policy packages prune regulations and simplify licensing procedure to facilitate investment needed by the country to cope  with the economic slowdown .

President Joko Widodo said the government would continue deregulation policy  and issuing more policy packages.

Through the policy package the government want to give a strong message to the public that it is serious and consistent in its move to transform the economic fundamentals.

"We want the people  and the business community to know that we would continue to work hard for reformation of both regulation and the bureaucracy," the president said.  (WDY)